16 July 2007

Google dismisses ACCC claim

Google has responded to claims made by the Australian Competition and Consumer Commission (ACCC) that the search engine giant has been misleading in its handling of sponsored links sold to firms.

The ACCC has alleged that Google is not differentiating sufficiently between sponsored and organic links and has launched legal action to that effect, with the case to be heard in Sydney next month.

However, this is a charge that Google strenuously denies, with a spokesperson claiming that the search engine provider will fight the claims made by the commission.

Google spokesman Rob Shilkin said: "Google Australia believes that these claims are without merit and we will defend against them vigorously. They represent an attack on all search engines."

The ACCC's claims date back to 2005 when sponsored links were taken in the name of two car dealerships in Australia but when a web user clicked on them, they were transferred to the website of Trading Post, a classified adverts firm.

Experts have predicted that there could be wide-reaching implications from the court case, which is believed to be the first trading standards case to be brought against the US-firm.

Peter Coroneos, chief executive of trade body the Internet Industry Association, told the Financial Times: "The [Australian] internet industry has had a long and positive relationship with the ACCC and it is highly perplexing that they have moved directly to litigation."

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